Zscaler (NASDAQ:ZS) Price Target Raised to $210.00 at Mizuho

Key Points

• Mizuho raised Zscaler’s price target to $210 from $185 and maintained an “outperform” rating, implying 12.69% upside from the prior close.
• Analyst sentiment remains broadly positive: 34 analysts rate the stock a Buy, six a Hold and one a Sell, producing a “Moderate Buy” consensus and an average price target of $214.72.
• Zscaler exceeded quarterly expectations with $1.08 EPS versus $1.01 expected and revenue of $850.48 million, up 25.4% year over year, though the company continues to report negative net margins and a very high valuation.

Zscaler (NASDAQ:ZS - Get Free Report) had its price objective upped by investment analysts at Mizuho from $185.00 to $210.00 in a report released on Wednesday,Benzinga reports. The brokerage presently has an "outperform" rating on the stock. Mizuho's target price would indicate a potential upside of 12.69% from the stock's previous close.

Several other research firms also recently issued reports on ZS. HC Wainwright upgraded shares of Zscaler from a "buy" rating to a "buy" rating in a report on Monday, May 18th. Weiss Ratings reissued a "sell (e+)" rating on shares of Zscaler in a report on Tuesday, June 9th. Wedbush reaffirmed an "outperform" rating and issued a $220.00 price target on shares of Zscaler in a research note on Wednesday, June 10th. Sanford C. Bernstein reduced their price objective on Zscaler from $228.00 to $224.00 and set an "outperform" rating for the company in a research note on Wednesday, May 27th. Finally, Rosenblatt Securities reiterated a "buy" rating and issued a $200.00 price objective on shares of Zscaler in a report on Wednesday, June 10th. Thirty-four equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $214.72.

Zscaler Price Performance

Shares of ZS stock traded up $0.64 during mid-day trading on Wednesday, hitting $186.34. The company had a trading volume of 791,286 shares, compared to its average volume of 3,381,637. Zscaler has a 52-week low of $114.63 and a 52-week high of $336.99. The stock's 50 day moving average price is $147.88 and its 200-day moving average price is $150.61. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.86 and a quick ratio of 1.86. The company has a market capitalization of $30.13 billion, a P/E ratio of -387.65, a P/E/G ratio of 66.08 and a beta of 0.94.

Zscaler (NASDAQ:ZS - Get Free Report) last released its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.01 by $0.07. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The business had revenue of $850.48 million for the quarter, compared to the consensus estimate of $835.14 million. During the same quarter in the previous year, the company posted $0.84 EPS. The company's revenue was up 25.4% compared to the same quarter last year. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. Equities research analysts forecast that Zscaler will post 0.12 earnings per share for the current year.

Insider Activity

In other Zscaler news, CEO Jagtar Singh Chaudhry sold 2,878 shares of Zscaler stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $363,865.54. Following the transaction, the chief executive officer owned 343,038 shares of the company's stock, valued at $43,370,294.34. The trade was a 0.83% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Kevin Rubin sold 503 shares of the company's stock in a transaction on Monday, July 27th. The shares were sold at an average price of $147.12, for a total transaction of $74,001.36. Following the completion of the sale, the chief financial officer owned 41,398 shares of the company's stock, valued at approximately $6,090,473.76. This trade represents a 1.20% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 16,269 shares of company stock valued at $2,052,589. 17.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Binnacle Investments Inc purchased a new position in Zscaler during the third quarter worth $25,000. AlphaCentric Advisors LLC acquired a new position in Zscaler in the 4th quarter valued at about $29,000. University of Texas Texas AM Investment Management Co. purchased a new position in Zscaler in the 4th quarter valued at about $30,000. Mcguire Capital Advisors Inc. acquired a new stake in shares of Zscaler during the 4th quarter worth about $32,000. Finally, Strive Financial Group LLC purchased a new stake in shares of Zscaler during the fourth quarter worth about $39,000. Institutional investors and hedge funds own 46.45% of the company's stock.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Stifel Nicolaus raised its price target on Zscaler from $175 to $200 and upgraded the stock to “Buy,” citing a potential 7.4% gain from recent levels. Benzinga analyst note
• Positive Sentiment: Cantor Fitzgerald reaffirmed its “Overweight” rating and maintained a $225 target, implying roughly 21% upside. The firm is particularly bullish on synergies from Zscaler’s Red Canary acquisition. Cantor Fitzgerald analyst note
• Positive Sentiment: Oppenheimer expects Zscaler to produce a slight upside surprise in fiscal fourth-quarter results. The forecast supports confidence in execution, although the expected beat appears modest. Oppenheimer Q4 outlook
• Positive Sentiment: Zscaler expanded its partnership with Carahsoft to distribute the Zero Trust Exchange to U.S. small and midsize businesses, broadening its sales reach and potential customer base. Zscaler and Carahsoft partnership
• Neutral Sentiment: Analyst commentary is mixed overall. Zscaler recently exceeded quarterly earnings and revenue expectations, with revenue up 25.4% year over year, but investors appear to require stronger forward growth to justify its elevated valuation. Conflicting analyst sentiment
• Negative Sentiment: A comparison with Okta argues that Okta currently offers steadier growth, a lower valuation, cross-selling potential and greater AI-agent upside, creating a relative-investment headwind for Zscaler. Zscaler versus Okta comparison

Zscaler Company Profile

Zscaler is a cloud security company that delivers a cloud-native platform to protect users, applications and data as organizations move away from traditional, network-centric security architectures. The company focuses on a zero trust approach that assumes no implicit trust for users or devices, providing secure access to the internet, SaaS applications and private applications regardless of where users are located. Zscaler positions its services as an alternative to legacy appliances and site-centric VPNs, aiming to simplify security while enabling modern, distributed workforces.

Key offerings are built around the Zscaler Zero Trust Exchange, a multi-tenant cloud platform that enforces security and access policies in-line.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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